Finance minister, P. Chidambaram presented his 8th and India’s 82nd Union budget on 28th February 2013. Key Highlights:
* No change in slabs and rate for personal income tax. * Tax credit of Rs 2000 to be provided to every person to having income of up to Rs 5 lakh, this will benefit 1.8 crore people. * 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore. * Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent. * No change in peak rate of customs duty for non-agriculture products. * Import duty raised on set-top boxes from 5 to 10 per cent to safeguard interest of domestic producers. * Education cess to continue at 3 per cent.

* Import duty raised from 75 to 100 per cent on luxury vehicles. * Duty free limit on gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female. * Specific excise duty on cigarettes and cigars raised by 18 per cent. * Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted. * Vocational courses offered by state-affiliated institutes to be exempted from services tax. * Duty on mobiles above Rs 2,000 raised from one to six per cent, based on their maximum retail prices. * Service tax to be levied on all a/c restaurants.

* One time voluntary compliance scheme for service tax defaulters to be introduced. Interest and penalties to be waived. * Direct tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700 crore. * Fiscal deficit will be 5.2 per cent in current year and 4.8 per cent in the next fiscal.

Impact Of Budget On Social Sector:
Education:
Highlights: * Rs. 27,258 crore provided for Sarva Shiksha Abhiyaan (SSA). * An increase of 25.6 per cent over RE of the current year for investments in Rashtriya Madhyamik Shiksha Abhiyan (RMSA). * Rs. 5,284 crore allocated to Ministries/Departments in 2013-14 for scholarships to students belonging to SC, ST, OBC, Minorities and girl children.

Comments:
Finance minister Chidambaram has allocated Rs 65,867 crore to the ministry of human resource development (MHRD) — an increase of 17 per cent compared to last fiscal year 2012-13.

While allocations for education sector have increased significantly, overall expenditure performance has been weak with a large portion of allocated funds remaining unutilized. Funds are released only at the end of the year due to which the funds cannot be effectively utilized.

Political decentralization must be supported by financial decentralization. Once the fund is parked in the ministry, schemes and programmes must be immediately clocked so that fund flow is made available to the local self government bodies within a month

The focus on Sarva Shiksha Abhiyan is not enough. Aspirations for higher education have enhanced exponentially among Indian Youth. Government aided higher education and vocationalisation of education is the need of the hour.

Health Care:

Highlights:

* Mid Day Meal Scheme (MDM) to be provided Rs. 13,215 crore. * The Integrated Child Development Scheme has been allocated 17,700 crore in 2013-14, representing an increase of 11.7 percent, from Rs 15,850 crores. * Allocation of funds for Drinking water and Sanitation

* Eligibility conditions for life insurance policies of persons suffering disabilities and certain ailments to be liberalized. * Extension of Rashtriya Swasthya Bima Yojana (RSBY) to other categories.

Comments:

The scope of Rashtriya Swasthya Bima Yojna (RSBY) has been expanded to widen its coverage, to include rag pickers, rickshaw pullers, taxi and autorickshaw drivers, miners, sanitation workers and toddy workers which is also expected to have an impact in improving access to healthcare for the marginalized section of the society. Public expenditure on health in India is...

...important function for all businesses as they seek to compete and profit in their industry.
Estimate and forecast future cash flows – future cash flows are what create value for businesses overtime. Capital budgeting enables executives to take a potential project and estimate its future cash flows, which then helps determine if such a project should be accepted.
Facilitate the transfer of information – from the time that a project starts off as an idea to the time it is accepted or rejected, numerous decisions have to be made at various levels of authority. The capital budgeting process facilitates the transfer of information to the appropriate decision makers within a company.
Monitoring and Control of Expenditures – by definition a budget carefully identifies the necessary expenditures and R&D required for an investment project. Since a good project can turn bad if expenditures aren't carefully controlled or monitored, this step is a crucial benefit of the capital budgeting process.
Creation of Decision – when a capital budgeting process is in place, a company is then able to create a set of decision rules that can categorize which projects are acceptable and which projects are unacceptable. The result is a more efficiently run business that is better equipped to quickly ascertain whether or not to proceed further with a project or shut it down early in the process, thereby saving a company both time and money.
Unlike other business...

...UNIONBUDGET 2012-2013 ANALYSIS
SAJILAL.N.S
Roll No: 8, SIES EMBA 2012
CONTENTS
Overview of Indian Economy
Approach to Budget
Key Attributes of 2012-2013 Budget
Challenges Going Forward
OVER VIEW OF INDIAN ECONOMY
The Indian economy had left behind the low-growth track of the early 1980s, following the bold economic reforms initiated in 1991-93. India began to appear as a significant player in the global economy. India’s exports began to climb, its foreign exchange reserves, which for decades had hovered around 5 billion dollars, rose exponentially after the economic reforms and in little more than a decade had risen to 300 billion dollars. Indian corporations that rarely ventured out of India suddenly started investing all over the world and even in some industrialized countries.
The globalization of India has given rise to new opportunities but it has also brought with it new challenges and responsibilities. Every time there is a major financial crisis anywhere in the world, there is need to take brace position. And, in turn, the rise and fall of India’s growth rate has an impact on global growth and there is need for India to take this responsibility seriously. The brewing trouble of Euro-zone Debt Crisis is posing a threat to global economical growth and seriously questioning the recovery strategies of various developng economies around the globe....

...officially began a nationwide recession that triggered budget problems in at least forty-five states.
-The 2001 recession was the fourth recession in 30 years. After past recessions budget experts recommended establishing a “rainy-day fund” (saving funds during boom times in order to cushion the shocks of economic busts). Wisconsin established the fund but never put money into it.
-During the 1990-1991 recession Wisconsin’s fiscal stress was ranked the lowest among the 50 states. During the 2001 recession Wisconsin was among the states that were experiencing the highest levels of fiscal stress.
-This stress was due to both structural and cyclical causes.
Wisconsin’s Budget and Balanced Budget Requirements
-Wisconsin’s biennial budget is passed in odd-numbered years.
-During even-numbered years the legislature holds a “budget review” or “budget adjustment” to make adjustments if necessary.
-Wisconsin’s General Fund budget must be balanced each year. This requirement is contained in state statutes, rather than in the state’s constitution.
-Wisconsin’s constitution allows the state to run a deficit in a given year, as long as a tax is levied “for the ensuing year, sufficient, with other sources of income, to pay the deficiency as well as the estimated expenses of the ensuing year.”
Coping with Fiscal Stress: The FY 2001-2003...

...AS AN ECONOMIST DISCUSS HOW THE 2013 BUDGET SPEECH HAS ADDRESSED OR NOT ADDRESSED THE PROBLEMS OF LOW ECONOMIC GROWTH, ECONOMIC DIVERSIFICATION AND UNEMPLOYMENT IN BOTSWANA
ECO 322 ASSIGNMENT
2/1/2013
OFENTSE JIMMY SEEMULE ID:201000445
INTRODUCTION
The budget speech is important information for the nation, and other countries, because it is able to attract both local and foreign investors, therefore it is imperative that issues addressed by the budget speech be clear, truthful and prise to acquire valid feedback regarding national progress which will help the nation to exact more effort in dealing with macroeconomic issues like unemployment and economic growth. The nation is informed about national progress every year via the budget speech, which addresses several issues of great national concern, mostly economic issues. The budget speech is also a review and a preview of financial issues regard economic growth, central bank reserve policies of local and foreign financial performance of the nation.
Economic issues addressed by the budget speech are very sensitive issues, which relate to one another simply because they are dependent economic variables. If unemployment rates are high that can mean that there will be less contribution of employment towards national revenue through income tax, which will lead to low economic growth. If there is lack of performance from...

...Case Analysis of U.S. Budget
By: Adrienne Chavis
Professor: Frank Pidgeon
PA 581- Government Budgeting and Finance
Introduction
This paper discusses the financial complexities of the U.S. Government and its Department of Education. The purpose of this paper is to analyze the funding level of the U.S. Government and its Department of Education. It also reviews several trends that are identified at 2009 actual, 2010 and 2011 amounts for outlays and receipts, and relationship to the Gross Domestic Product (GDP). It further considers key summary of the budget message of the President of the United States as it is related to issues and economic situations during the financial year 2009 (Office of Management and Budget, 2010). This paper also discusses various other budget documents that follow a budget message and their related issues and initiatives. In addition, this paper also considers some major funding items, the mission statement and key strategic goals.
Budget Message of the President
Education is considered as a priority in the budget message of the President of United States. The President sated that the country has made an efficient growth in the economy and reduced the federal deficit by $250 billion since 2004. The government used a formula to achieve a balanced budget to create conditions for economic growth, keep taxes low, and...

...﻿POL201
ESSAY 2
Dumas Maugile
The federal budget of the United States is the legislation dictating how much money the federal government is entitled to spend in one fiscal year. It is proposed by the president get but must be reviewed and then passed by congress to pass it and put it into law, then sending back to the President for his signature. There are numerous rules and regulations that congress must follow when making decisions to do with thebudget; essentially congress will set spending limits which will be passed down to various subcommittees who will then apportion money to all the different federal programs that are to be covered by the budget.
The federal budget is split into two main categories, known as mandatory and discretionary spending. Mandatory spending is essentially composed of ‘long term’ programs, or ones that require funding as dictated by law that is not changed by annual appropriations acts. Mandatory (or direct) spending is composed of many of the larger ‘entitlement’ programs in the United States such as Social Security, Medicare and Medicaid. Mandatory spending typically accounts for around 60% of the federal budget and does include smaller expenses such as certain federal salaries. Discretionary spending on the other hand, requires a new bill every year and is composed of hundreds of various programs for which an appropriations committee must set...